Computer and Electronics Industry Job Outlook

Employment in the computer and electronic product manufacturing industry is
expected to decline rapidly over the next decade, but there should still be
favorable employment opportunities in certain segments of the
industry—especially in highly skilled positions.

Wage and salary employment in
the computer and electronic product manufacturing industry is expected to
decline by 19 percent between 2008 and 2018, compared with a projected increase
of 11 percent in all industries. Although the output of this industry is
projected to increase quickly, employment will decline as a result of rapid
productivity growth. Employment also will be adversely affected by continued
increases in imports of electronic and computer products, including intermediate
products such as microchips. Although a great deal of the design work in this
industry takes place in the United States, much of the manufacturing process has
been moved overseas.

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The projected change in employment over the 2008-18 period varies by industry
segment. Although demand for computers should remain relatively strong
worldwide, employment is expected to decline 32 percent in computers and
peripheral equipment and 34 percent in semiconductor and other electronic
component manufacturing. Declines in both will be due to the introduction of new
technology and automated manufacturing processes, as well as a slowdown in the
growth of output in these segments from previously high levels. Further, these
segments will continue to face strong foreign competition.

Employment in navigational, measuring, electromedical, and control
instruments manufacturing is expected to decline by 2 percent. The smaller
declines in this segment are due mainly to heavy spending on military and
healthcare electronics. Sales of consumer navigational devices also will help
mitigate job losses in this segment. Employment in audio and video equipment
manufacturing is expected to decrease by 46 percent, reflecting continued import
competition as well as improvements in productivity. Employment in
communications equipment manufacturing is expected to decline by 7 percent due
to automation and consolidation among firms in the industry. Employment in the
manufacturing and reproduction of magnetic and optical media is expected to
decrease by 26 percent because of higher productivity and more efficient
production processes.

There should be a smaller decrease in employment among professional and
related occupations than among production occupations in the computer and
electronic product manufacturing industry. Despite large numbers of engineering
graduates in many foreign countries, many American manufacturers prefer
U.S.-based engineering teams because they are believed to have a better
knowledge of the domestic market. However, the use of the Internet and other new
forms of communication makes it possible for engineers to collaborate over great
distances, and foreign markets for these goods are growing. Many U.S.-based
companies that formerly performed their R&D work domestically are now opening
development centers overseas to take advantage of the close proximity to foreign
markets.

The computer and electronic product manufacturing industry is characterized
by rapid technological advances and has grown faster than most other industries
over the past several decades, although rising costs, reduced domestic market
share, and the rapid pace of innovation continue to pose challenges. Certain
segments of the industry and individual companies often experience problems. For
example, the industry occasionally undergoes severe downturns, and individual
companies—even those in segments of the industry doing well—can run into trouble
because they have not kept up with the latest technological developments or
because they have erred in deciding which products to manufacture. In addition,
the intensity of foreign competition and the future role of imports remain
difficult to project. The United States continues to have a comparative
advantage in many industry segments—more products are exported than imported—but
other technologically advanced countries are beginning to erode this advantage.
Global competition has wiped out major parts of the domestic consumer
electronics industry, and future effects of such competition depend on trade
policies and market forces. The industry is likely to continue to encounter
strong competition from imported electronic goods and components from countries
throughout Asia and Europe.

Nonetheless, innovation will continue to drive employment growth within some
industry segments. Smaller, more powerful computer chips are constantly being
developed and incorporated into an even wider array of products, and the
semiconductor content of all electronic products will continue to increase. New
opportunities will continue to be created by the growth of digital technology,
artificial intelligence, and nanotechnology, as well as the expansion of the
Internet and the increasing demand for global information networking.

Despite the overall projected decrease in employment, many employment
opportunities should continue to arise in the industry due to the technological
revolutions taking place in computers, semiconductors, and telecommunications,
as well as the need to replace the many workers who leave the industry due to
retirement or other reasons. Opportunities should be best in research and
development. The products of this industry—especially powerful computer
chips—will continue to enhance productivity in all areas of the economy.

Computer software engineers are also in high demand in this industry because
many complicated hardware products require software. This includes both drivers
that help devices interface with computers, and software that runs directly on
complex devices.

Despite the rapid decline of production jobs, prospects should still be fair
for qualified workers. Much of the decline in this industry is concentrated
among production workers, as manufacturing becomes more automated and
labor-intensive jobs are offshored. Workers with formal training in high-tech
manufacturing will have the best opportunities, as changes in the nature of the
work have meant that workers need to have a higher skill level than before.
Nevertheless, other manufacturing industries are becoming highly technical,
which means they often compete with this industry for qualified workers. In many
cases, skills learned in this industry are transferrable to other industries.

Source: Bureau of Labor
Statistics, U.S. Department of Labor, Career Guide
to Industries, 2010-11 Edition